Digital Dollar Project on Wednesday released a new version of its CBDC white paper.
The project extended the research to explore CBDC programs internationally.
The DDP released its first edition of the document on a wholesale and retail CBDC in May 2020.
Version of its white paper “Exploring a US CBDC.”
The project broadened the reach of the paper to examine central bank digital currency efforts around the world. However, the focus remains on the United States.
In May 2020, the DDP introduced its "champion model" of a wholesale and retail CBDC in the first version of the document. Since then, CBDC projects have grown from 35 to 114 worldwide.
The updated DDP paper included the champion's core concepts. The paper also includes those on privacy and monetary policy, and covered modern technological advancements.
The report's new proposals mostly centered around the authors' concerns about the US falling behind in CBDC research and leadership. Regardless of the final decision by the US to introduce a dollar CBDC, the authors stated:
“It is crucial that the US consider strategies to keep the dollar in digital global payment systems. And also to develop a plan for the use of alternative payment systems.”
In 2020, former CFTC chairman Christopher Giancarlo established the DDP to advocate a US CBDC. In collaboration with the information technology firm Accenture, the agency has undertaken a number of trial initiatives. It launched a technical sandbox with Ripple, Emtech, and three other firms in 2022.
In January 2022, the Federal Reserve issued a paper stating that it would only pursue a CBDC if there was widespread public and cross-governmental support. Research on a US CBDC has continued, most notably in Project Hamilton. The project has produced two reports and recently declared its goal complete.
However, the Fed has yet to get a signal from the government to proceed with the launch of a USD CBDC.
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